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Your Guide to a Successful Home Buying Journey in Knoxville

Dated: February 14 2024

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Embarking on the journey to purchase your dream home in Knoxville? Exciting times are ahead! Before you dive into home tours, take a moment to kickstart your home-buying process with a crucial first step – getting prequalified for a mortgage. To help you along the way, we've prepared a checklist to ensure a smooth experience.

1. Personal Documents

Gather two forms of government-issued ID, your social security number, and, if applicable, divorce papers. Also, bring proof of ownership for any other properties you may own.

2. Review Your Credit Report

Check your credit report for free and dispute any errors. Maintain a healthy credit score by avoiding new inquiries, closing credit accounts, or reducing credit limits, as these actions can affect your score.

3. Tax Returns

Provide tax returns for the previous year and potentially the last two years.

4. Proof of Income

For W2 employees, collect paycheck stubs, W2s, and 1099s. If you're self-employed, present a year-to-date profit and loss statement. Include documentation for other income sources such as Social Security, child support (with proof of children's ages), or government assistance.

5. Proof of Assets

Compile bank statements, mutual fund statements, and account balances for retirement accounts, 401Ks, IRAs, and any investments in the stock market.

6. Debt Summary

Present a detailed summary of your debts, including monthly payment amounts, child support payments, and balances for credit cards, student loans, car loans, and other property loans.

7. Financial Issues

If you've experienced a bankruptcy or other financial issues, provide a written explanation.

8. Down Payment and Closing Funds

Ensure your down payment and closing costs are ready and available in your bank account. If the funds are a gift, include a letter from the giver confirming it's not a loan.

9. Renting History

For renters, gather proof of the past year's rent payments with canceled checks or money orders to showcase timely payments.

10. Mortgage Pre-Approval Success

If you've received mortgage pre-approval, take the opportunity to compare offers from different lenders. Doing your research ensures you secure a competitive deal for what may be the most significant purchase of your life.

Thinking about applying for your first mortgage? Reach out to your local Knoxville Living realty agent! I'm here to guide you through the process and make your home-buying journey a breeze.

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Deanna Mendenhall-Miller

Deanna graduated from the University of Tennessee, where she was a member of both the Equestrian and Horse Judging teams. Following graduation, Deanna joined a local restaurant company and worked as p....

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